(a) Prepare Income statement and Retain earning.

PROBLEM 2 Hayden Inc. is a private corporation reporting under ASPE. The following information has been taken from the adjusted trial balance: Accounts payable $ 23,700 Interest expense $ 7,500 Cash dividendscommon 120,000 Notes payable 125,000 Common shares 150,000 Rent expense 43,500 Depreciation expense 51,650 Retained earnings (Dec. 1, 2013) 339,500 Dividends payable 30,000 Salaries expense 220,000 Income tax expense 15,000 Service revenue 425,000 Income tax payable 1,500 Unearned revenue 19,500 Insurance expense 10,350 All accounts have normal balances and total assets equal $646,200. Hayden has a 15% income tax rate. Instructions (a) Prepare Income statement and Retain earning